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Trading platform Robinhood cuts 10% of workforce
CNBC • • business
Key Points:
- Robinhood announced it will cut 10% of its full-time workforce, approximately 290 jobs, to streamline operations by flattening management layers and increasing efficiency.
- CEO Vlad Tenev emphasized the company’s strong business position and the need to operate as a lean, focused team rather than a heavily layered organization.
- The company expects to incur about $28 million in restructuring costs related to severance, benefits, and share-based compensation, to be recognized in the second quarter.
- Despite a challenging first quarter due to crypto market volatility, Robinhood reported record average daily trading volumes in June and has diversified its offerings to include retirement accounts, wealth management, and credit cards.
- Robinhood’s stock rose nearly 3% in premarket trading, though it remains down 13% for the year as of the previous close.
